Mahindra is withdrawing from Brazil after a sluggish economy, changes in regulation and a depreciating currency hurt sales, Pravin Shah, chief executive of Mahindra's automotive division and international operations, said.

The Indian company, which was selling the vehicles through its local partner, Bramont-Montadora Industrial e Comercial de Veiculos, sold about 250 units a month "in the best of times", Shah said.

"Where we don't see mid-to-long-term prospects, there is no point. We call spade a spade and get out of that," he said, adding that Mahindra will continue to sell vehicles in the neighbouring markets of Chile, Peru and Paraguay. (Reporting by Aman Shah; Editing by Sunil Nair)